In May, consumer prices rose 2.4% over the previous month, which was more than twice the 1.0% rise expected by market analysts. The monthly reading followed on a 0.9% increase in April and contrasted the 0.4% drop tallied in May 2010. As a result, annual inflation jumped from 4.3% in April to 7.2% in May, the highest level in six months. The higher-than-expected reading reflected surging prices for clothing and footwear (+11.7% month-on-month) as well as food and non-alcoholic beverages (+4.7% month-on-month). Meanwhile, the core inflation index, which excludes more volatile categories such as unprocessed food and energy, rose a less pronounced 1.5% over the previous month, driving annual core inflation to 4.8% (April: 4.5%). The May inflation surge undermines the Central Bank's low interest rate policy. At its latest monetary policy meeting on 25 May, the Bank decided to keep the key policy rate and the reserve requirement ratio unchanged, as was widely expected by market analysts. In the accompanying statement, the Bank reiterated its conviction to maintain the current policy mix. The Central Bank forecasts inflation to finish at 6.9% this year and to end 2012 at 5.2%. However, the official year-end inflation target remains at 5.5% this year and slightly lower at 5.0% for 2012.
Inflation spikes in May
June 6, 2011
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Turkey Economic News
October 21, 2016
The consumer confidence index, published by the Statistical Institute in cooperation with the Central Bank, decreased slightly from 74.3 in September to 74.0 in October.
October 20, 2016
At its 20 October monetary policy meeting, the Central Bank of the Republic of Turkey (CBRT) decided to keep the marginal funding rate unchanged at 8.25%.
October 13, 2016
The current account balance recorded a USD 1.8 billion deficit in August (July: USD 2.7 billion deficit).
October 10, 2016
In August, industrial production expanded a calendar-adjusted 2.2% compared to the same month last year.
October 3, 2016
In September, consumer prices increased 0.18% over the previous month.